Startup Basics
What are startups?
a human enterprise designed to create a new product or service that solves a problem under conditions of extreme uncertainty
What is an entrepreneur
anyone who engages in a startup, whether it be a new product or business
TWO MAIN ROUTES FOR PRODUCT DEVELOPMENT
ROUTE 1: CREATE, THEN IDENTIFY
ROUTE 2: IDENTIFY, THEN CREATE
Who founded Amazon?
problem statement
a concise description of a pain point to be addressed or a condition to be improved upon
Who creates start-ups?
Entrepreneurs
What is entrepreneurship?
the activity of setting up a business and taking on financial risks in the hope of profit
Pros & Cons for Create, Then Identify
Pros: Great when creating new technology that is not already in the market yet.
Cons: Can be hurtful if it does not test and validate its assumptions about the market
Who founded Tesla & SpaceX?
Elon Musk
target market
a particular group of customers at which a product or service is aimed
Why are startups considered risky?
very little practice in their segment
small to no working capital
many brand recognition obstacles
small team
Name one risk that entrepreneurs often take.
Losing money, time, or effort if the idea doesn’t succeed.
Pros & Cons for Identify, Then Create
Pros: Great for a new pain point that has not previously been solved by a product
Cons: Need more research and money before creating a product
Which entrepreneur said: "If you can dream it, you can do it."
Walt Disney
pain point
a level of difficulty sufficient to motivate someone to seek a solution or an alternative
What does “extreme uncertainty” mean in the context of startups?
It means they don’t know yet if their idea will work, sell, or survive in the market.
What is shark tank?
"Shark Tank" is a reality television show where entrepreneurs pitch their business ideas to a panel of investors (the "Sharks") to secure funding.
What does being lean and failing fast mean?
lean - the ideology of using as little resources as possible to achieve a goal
failing fast - the ideology of failing quickly and as much as possible in order to save the most time and resources
Name two companies that started as student projects or in a college dorm room.
Examples: Facebook (Harvard), Google (Stanford), Snap Inc. (Stanford), Reddit (University of Virginia)
value hypothesis
an assumption about a company’s target market that can be validated by experimentation or observation on how a product is valuable to potential customers
What makes a startup different from a small business?
A startup aims to grow fast and disrupt a market; a small business usually stays local and stable.
What does TALENT stand for?
Total Applied Learning for Entrepreneurs
The Lean Startup method is made up of 2 ideas-?
lean
failing fast
Name an entrepreneur under 21
Open-Ended
What is the term for a short, persuasive speech where an entrepreneur explains their product idea to potential investors?
Pitch